Pilot investors take Sh2.4 billion loan to expand airline fleet

Skyward Express Limited, an airline owned by three Kenyan pilots, has taken Sh2.4 billion loans from local banks to boost its fleet.

The airline, which began operating scheduled passenger flights in January, says it used the money to lease three Bombardier planes, bringing its total fleet size to eight.

The carrier on Tuesday launched scheduled flights from Wilson Airport to Eldoret. Skyward is already flying the 50-seater aircraft to Eldoret, Wajir, Mandera and Lodwar. It also plans to launch once-a-day routes to Mombasa and Kisumu in a fortnight.

“We acquired three planes about four months ago from businesses in America and Europe to specifically serve the passenger routes we have launched this year,” Mohamed Somow, the airline’s commercial director, told Business Daily during the launch in Eldoret.

“The company spent about $24 million (Sh2.4 billion) on the three aircraft. This capital was sourced from a consortium of local lenders whose identity I am not at liberty to reveal.” Mr Somow co-owns the company with Mr Muhumed Abdi (Skyward’s chairman) and Mr Issack Somow who serves as the managing director of the three-year-old company.

The trio has previously worked for airlines such as Executive Turbine Kenya, Aircraft Leasing Services (ALS) and cargo airline Astral Aviation among others.

Their business until this year was in cargo, shipping commodities (mostly humanitarian aid) to countries like Ethiopia, Somalia and South Sudan under the company name Skyward International.

Skyward Express — the rebranded outfit — has ventured into the scheduled flights, looking to get a slice of the pie from competitors like Jambojet, Fly540, Air Turkana and Safarilink. Its passenger planes fly to Eldoret, Wajir, Mandera and Lodwar.

The Lodwar route began operations last month, with Skyward becoming the fifth airline to start flying to the oil-rich Turkana region.

READ: Fifth airline launches flights to Turkana

Skyward, which has 120 staff, plans connecting routes from the coastal city by the end of this year.

“There is market in Kenya for a passenger service that offers reliability and is flexible with its pricing structure. These are some of the elements Skyward Express is offering its customers.”

Return tickets to Lodwar, Wajir and Mandera are going for Sh26,000, Sh18,000, Sh30,000 respectively while it will cost a passenger Sh10,000 to secure a return ticket to Eldoret.

Skyward’s entry into Mombasa and Kisumu will see it compete with Jambojet operated by Kenya Airways.